S&P Global Ratings lowered its long-term rating to 'A-' from 'AA-' on El Cerrito Public Financing Authority, Calif.'s sales tax revenue bonds, issued on behalf of the City of El Cerrito. The outlook is negative. The downgrade reflects the application of our "Priority-Lien Tax Revenue Debt" criteria, published Oct. 22, 2018, which factors in the strength of the pledged revenue, as well as the general credit quality of the city where taxes are distributed and collected (the obligor's creditworthiness, or OC). The negative outlook is based on our negative outlook on the city's general fund rating, and we anticipate resolving the negative outlook on the sales tax revenue bonds concurrently with the negative outlook on the city's general fund rating.
